MAYFIELD, Ky. (Nov. 10, 2004) — Continental Tire North America Inc. (CTNA) has presented a seniority-based severance package proposal to employees at its Mayfield plant who will be laid off as a result of Conti's suspending tire production there.
The offer, made during negotiations Nov. 4-5 with United Steelworkers of America (USWA) Local 665, includes lump-sum severance payments of up to $8,000 for the most senior employees. It also offers preferential hiring rights for laid-off Mayfield employees at other Conti Tire North America plants; would create a special transition assistance fund for the benefit of laid-off workers, with Conti putting more than $1.1 million in the fund; and includes an agreement to rehire laid-off employees if tire production resumes at Mayfield.
Negotiations with Local 665 will continue Nov. 18-19. Union officials couldn't be reached for comment.
Tire production is slated to cease by year-end, with mixing and warehousing operations to continue at Mayfield. The moves will cost 700 hourly and 115 salaried workers their jobs.
Conti is taking $139 million in charges against earnings this year to account for the cutback.